He had expansionist plans and decided the oil in Libya would finance it all. He shut down British and American military bases in Libya and closed all catholic churches. He also ordered the churches to sell their crosses and contents at auction.
Impact One: Mu'ammar Al Qaddafi
Qaddafi made an alliance with the Soviet Union and Terrorists because he hated Israel. The US banned oil and passports to and from Libya because of Terrorist links in Libya. There is also a rumor of Qaddafi ordering a bombing on the US.
Impact Two: Alliances
The government was neutral to the US while the business environment was hostile due to corruption. The government became hostile to the US in 1963 because of Qaddafi. Qaddafi then abolished the federal system and changed the country to Kingdom of Libya.
Impact Three: Government
In 1955 a law named the Libyan Petroleum law was created to provide for smaller concessions which made the oil m ore profitable than other countries oil. The oil was easily distributed due to the location of Libya in the Middle east. They had a strategy called the Libyan strategy - the strategy of diffusion.
Impact Four: Oil
Libya's profits started to boom due to the increased price on oil. Libya negotiated to share five more percent of oil than they were due to a pipeline rupture in Syria. No longer the gas station of Europe because they lost many countries to export oil to due to alliances with terrorists